Cameroon’s presidency backs Prime Global Energies’ 42.5% stake in Thali oil permit
Yaoundé has approved the transfer of a 42.5% interest in Cameroon’s offshore Thali permit to Prime Global Energies, according to UK-based operator Tower Resources. The farm-out agreement, which still requires administrative completion, commits the incoming partner to a $15 million investment in the work programme, with the NJOM-3 appraisal well as the primary target. At the European Central Bank’s reference rate of 28 September 2026, that sum is equivalent to roughly 8.65 billion FCFA.
The deal is not a direct cash payment to Tower. It is an investment commitment — the standard farm-out mechanism under which a partner funds a share of the technical programme in return for an equity stake. Prime Global Energies will join Thali as a non-operating partner; Tower Resources Cameroon, the London group’s local subsidiary, will retain operatorship.
Administrative steps still pending in Yaoundé
Presidential authorisation alone does not close the file. In its half-year accounts to 30 June, published on 28 September, Tower said it had seen a copy of the presidency’s letter to the Prime Minister’s office, the Ministry of Mines, Industry and Technological Development (Minmidt) and the National Hydrocarbons Corporation (SNH). Minmidt must still issue the order extending the initial exploration period and forward the formal approval letter for the transfer.
Until those executed documents are in the parties’ hands, the transaction remains on hold. Tower acknowledges that the completion timetable is uncertain. That caution is telling: the exploration programme is already several years behind schedule because of insufficient funding to launch drilling.
Prime Global Energies, registered in the United Kingdom and focused on upstream oil and gas, is no newcomer to the sector. The company was still known as Prime Pakistan Limited until December 2024, having previously operated as Eni Pakistan Limited. That lineage with the Italian group Eni gives it operational experience that could reassure Cameroonian authorities about the technical strength of the new partner.
NJOM-3 pushed to the second quarter of 2027
Prime’s entry is aimed chiefly at securing financing for NJOM-3, the next appraisal well planned on Thali. Tower has revised its schedule: drilling is now expected to start in early Q2 2027, from April onwards, against an earlier assumption of Q1. An earlier start has not been ruled out entirely, but management prefers to stick with the more conservative window in its forecasts.
“We currently expect to begin drilling in early Q2 2027,” says Jeremy Asher, chairman and CEO of Tower Resources. The choice of drilling rig has not yet been contracted. The company continues to review available units on the market and has decided not to comment further until a firm contract is signed. Agreements in principle with other service providers needed for the operation are, however, already in place.
Part of the logistics is already set up in Douala. Tower has stored there, along with other equipment destined for NJOM-3, a system to suspend the well after testing and later reuse it for production, should test results prove encouraging.
A depleted treasury makes the deal vital
Prime’s contribution is almost existential for Tower. The group states in its accounts that it must either complete the Cameroon farm-out, conclude another transaction on its assets, or raise additional capital to meet its commitments. At 30 June 2026, the company held just $66,583 in cash against $2.91 million in current liabilities. It has never produced a barrel and generates no revenue.
In the first half, $453,000 of expenditure was capitalised in Cameroon, down from $982,000 a year earlier. These commitments cover preparation for NJOM-3, engineering studies, drilling planning and the running of the Douala office. The $15 million promised by Prime should cover the remaining balance needed for the appraisal well. Subsequent testing and any commercial development of the field will require further funding rounds.